A short YouTube commentary by Kardec Trader stressing that a core trading fundamental is protecting downside risk. The speaker warns against traders who focus only on potential profits and neglect risk management, noting that ignoring losses and being unwilling to accept being wrong can lead to account wipeout.
One of the main key fundamentals of trading, in my opinion, is making sure you are always protecting your downside. Traders rush into the markets looking to make quick money with no risk management. I've seen many times where traders take on a position and the first thing they focus on when they take on a position is how much money they will make without factoring in that if they are wrong, how much they will lose. Why? Because traders don't like to factor in the idea of being wrong. A few bad trades can ultimately wipe your account out.
